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South African firm takes legal steps against Volcker panel

JOHANNESBURG: South African oil company Imvume, implicated in the corruption-riddled oil-for-food programme, has taken legal steps against a committee appointed by the United Nations to investigate irregularities, it was announced on Thursday.

"Steps have already been taken to institute legal proceedings in New York against the IIC (Independent Inquiry Committee) and an action claiming damages will be issued shortly," said a company statement cited by the SAPA news agency.

Imvume and its sister company, Montego, owned by South African businessman Sandi Majali, are accused of paying kickbacks, called a "surcharge," to secure a contract for two million barrels of oil from Iraq.

"Reckless, defamatory"

The company described the allegations as "untrue, reckless, irresponsible and highly damaging and defamatory."

A statement attributed to Mr. Majali and Imvume Management said they met two senior investigators from the IIC on June 30, 2005 for a five-hour interview.

"Mr. Majali specifically denied having paid any kickbacks to the Iraqi authorities at all. The investigators did not contest this," the statement said.

The investigators refused to provide him or the company with any of the documents presented at the interview but gave a firm and formal undertaking of confidentiality.

Shortly after the interview, the investigators gave journalists from the Mail & Guardian documents withheld from Imvume and Mr. Majali and disclosed to the weekly much of what was discussed at the interview, contrary to the undertaking of confidentiality, it said. — Xinhua

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